A

SYNOPSIS
ON
“THE GROWTH OF KPO’s IN INDIA
DURING THE PERIOD 2001-2010”

This synopsis is submitted for partial fulfillment of requirement for the

degree of master Of Business Administration (M.B.A)

(SESSION 2009-2011)

Submitted to: Submitted by:

Prof. Kushal Kanwar Rakesh Kumar

ID. AEMB0064B/09

ARNI SCHOOL OF BUSINESS MANAGEMENT”

ARNI UNIVERSITY, Kathgarh ( Indora ), Kangra (H.P.) – 176401

www.arni.in
 SIGNIFICANCE OF THE STUDY

This research project helps me to know much about the KPO(Knowledge

Process Outsourcing) industry. The main significance of the study are

1. This study will help me to understand the effect of the KPO in an Indian
economy.

2. It will help to understand the difference between the KPO (Knowledge

Process Outsourcing) and BPO(Business Process Outsourcing).

3. It will help to understand the growth of the KPO industry.

4. It will help to know what kind of jobs available in the KPO industry.

5. It will help to know the work culture of KPO industry.

 REVIEW OF LITERATURE

This is an updated report on Knowledge Process Outsourcing with figures that

analyze the predictions for the future growth of KPO in India that we made more
than three years ago. In this new study, we review the evolution of KPO to date
and update our predictions for the industry for the rest of the decade.

Current and Expected Growth of KPO

According to Evalueserve’s research, the

revenue earned by the Knowledge Process Offshoring industry worldwide was
approximately US $1.2 billion in 2003-04 and US $4.4 billion in 2006-07; this
implies an annual growth rate of 54 percent. Furthermore, the Knowledge Process
Offshoring industry employed approximately 34,000 and 106,000 professionals in
2003-04 and 2006-07 respectively. Our forecasts also show that the industry is
expected to grow to US $16.7 billion in revenue in 2010-11 (which would imply
an annual growth rate of 39 percent during the next four years) and to employ
approximately 350,000 professionals globally. In contrast, the rest of the Business
ProcessOffshoring industry worldwide grew from revenue of US $7.7 billion in
2003-04 to US $15.8 billion in 2006-07, which corresponds to an annual growth
rate of approximately 27 percent. During the next four years, the BPO industry is
expected to grow annually at 26 percent, thereby earning US $39.8 billion in
revenue during 2010-11.

The growth of the KPO industry in India from

2000-01 to 2006-07. According to Evalueserve’s research, although this industry
had only 9,000 billable professionals in India that generated total revenue of US
$260 million during 2000-01, this number had already grown to 75,400 by 2006-07
and these billable professionals generated US $3.05 billion. This implies a
cumulative annual growth rate of 51 percent in US Dollar terms and 43 percent
with respect to the increase in the number of billable professionals during these six
years. Interestingly, the growth of the KPO industry so far seems to be pretty much
in line with Evalueserve’s July 2004 forecasts, where we estimated that this
industry would generate US $2.9 billion in revenue during 2006-07. However, we
 believe that our original estimate of $11.9 billion being generated by this
industry during 2010-11 may fall short by 6-7 percent, primarily because (a) a few
sub-

sectors (e.g., legal, paralegal, intellectual property

services, and medical content creation) have not been growing as rapidly as
expected earlier, and (b) the KPO sector in India is experiencing substantial
employee turnover, which hurts this sector in particular because these employees
are unable to gain sufficient domain expertise and knowledge before they move on
to their next job.

we have assumed a constant conversion rate of one US

Dollar to 45 Indian Rupees, during the last four months the US Dollar has actually
depreciated by 9 percent with respect to the Indian Rupee and on 4th May 2007,
US $1 equaled approximately 41 Indian Rupees. Clearly, since the backend costs
are all in Indian Rupees, one on hand this deprecation of US Dollar may imply a
higher annual revenue for the KPO industry in India (if the captives and third
parties are able to charge in US Dollars), but on the other it is also possible that
India will become less cost-competitive and hence lose some of its revenue to
other low-wage countries, like China, the Philippines, Poland or Russia.

About the Author

Dr. Alok Aggarwal earned his Ph.D. in Electrical
Engineering and Computer Science from Johns Hopkins University in 1984, and
“founded” IBM’s Research Laboratory in New Delhi, India during his 16 years at
the IBM Thomas J. Watson Research Center. Dr. Aggarwal is the Co-founder and
Chairman of Evalueserve, and is an expert in the founding of successful service-
based operations serving a global client-base.
 Conceptualization

In present time KPOs industry is most growing industry in India. According to

industry estimates the size of the KPOs industry would be worth $17 billion
globally by 2010, out of which India would account for close to $12 bn. and three
lakh jobs would be created in the Knowledge Process Outsourcing space by 2010
and 70% of these jobs are expected to come to India. By this research topic I am
doing research on the growth of the KPOs industry in India during 2001-2010.
This study will help me to know that what kind of role KPOs plays in the Indian
economy, major functions of KPOs, what kind of jobs available in KPOs, why
KPOs comes in India. In this research project I will also try to know what kind of
education and special skill require to get the job in KPOs.
 FOCUS OF THE PROBLEM

Indian economy is developing economy and

changing day by day. KPO (Knowledge Process Outsourcing) industry playing
an important role in Indian economy. The size of the KPO industry would be
worth $17 billion globally by 2010, out of which India would account for close
to $12 bn. In this research report the main focus of the problem is to know that
KPO are growing in India or not. What was the condition of KPO in 2001 and
what is now? More of the problems are to know the effect of KPO on Indian
employment, does the more KPO should be open, effect of KPO’s income in
GDP.
 OBJECTIVES OF THE STUDY

• To understand the growth rate of the KPO industry.

• To find does the KPO reduce unemployment.

• To find why KPO comes in India.

• To find does the income of the KPO’s effect the GDP.

• To know how much the percentage of income of KPO’s generated from India.

• To know more KPO’s should be open or not.

• To understand the difference between KPO and BPO.

HYPOTHESIS

In this research project I will use null hypothesis and

I will select “KPO industry is not growing in India” as null hypothesis.
 RESEARCH METHODOLOGY AND RESEARCH
DESIGN

In this research project I will collect primary as well as

secondary data. For collection of primary data I will go Chandigarh, Mohali or
Punjab and for the collection of secondary data I will use internet, newspapers,
magazine ect.

DATA

Primary Secondary
Data Data

Primary Data: -
Primary data is that kind of data which is collected by the
investigator himself for the purpose of the specific study. The data such collected
is original in character. The advantage of this method of collection is the authentic.
A set of question will put together in the form of questionnaire with no. of
questions.
Secondary Data: -
When an investigator uses the data that has been
already collected by others is called secondary data. The secondary data can be
collected from journals, reports and various publications. The advantages of the
secondary data can be – it is economical, both in terms of money and time spent.
The researcher of the report also will do the same and collected secondary data
from various internet sites like google.com, altavista.com and many more. The
researcher of the report will also have to visit various libraries for collection of the
introduction part because secondary data help us to clearly defined the problem.
 UNIVERSE AND SURVEY POPULATION SAMPLE

SAMPLING UNIT :-

A decision has to be taken concerning a sampling

unit before selecting sample. Sampling unit may be a geographical one such as
state, city,or country ect. It is unit that is available for the study at some stage
of sampling process. In my study sampling unit are KPO locates at Punjab and
chandigarh region.

SAMPLING SIZE :-

It refers to no. Of items to be selected from the

universe. The size of sample should neither be excessively large , nor too small. It
should be optimum. It is decided that a sample size of 50 will take and it is also
decide to conduct the study in Punjab and chandigarh region.
 COLLECTION OF DATA
For the collection of primary and secondary data I will use two
methods. That are-

1. Interview method

2. Data collection through questionnaire.

3. Internet, newspapers, magazine ect.

ANALYSIS PATTERN
 After gathering the data from the Primary and
secondary sources the data will analyzed ,tabulated and interpretations will be
write down with the help of graphs, charts, table diagram ect. with the help of
Microsoft Excel and Microsoft Word.
 LIMITATION OF THE STUDY
No method is 100% perfect, every method have its own advantages and
limitation. During my research project I may face following problems-

1. For this research project I will go to Chandigarh, Mohali, and

Punjab. This will be more time consuming.

2. This Project also will hold more cost.

3. People are not much aware about the KPO industry. I will not be
able to take their valuable suggestion regarding my project.

4. It may be possible the employees of the KPO industry will not

co-operative.

5. I don’t know where the KPO located in Chandigarh, Mohali and

Punjab region. This will be difficult to find there location.

ORGANISATION OF THE STUDY

CHAPTER 1 INTRODUCTION

CHAPTER 2 RESEARCH DESIGN

2.1 OBJECTIVES OF THE STUDY
2.2 FOCUS OF THE STUDY
2.3 DATA COLLECTION
2.4 UNIVERSE AND SURVEY POPULATION SAMPLE
2.5 DATA ANALYSIS TOOLS
2.6 SIGNIFICANCE OF THE STUDY
2.7 LIMITATIONS OF THE STUDY

CHAPTER 3 DATA ANALYSIS AND INTERPRETATION

CHAPTER 4 FINDINGS AND RECOMMENDATIONS

ANNEXURE
A. BIBLIOGRAPHY
B. QUESTIONNAIRE
 BIBLIOGRAPHY
1. http://www.kpoexperts.com/why-india/why-choose-
india.htm

2. http://services.tekrati.com/research/9447/

3. http://www.kpodirectory.com/growth-in-kpo-industry.html

4. http://www.outsource2india.com/why_india/articles/KP
O.asp
5. http://www.kpoweb.com/knowledge_overview.html

6. http://www.vcsdata.com/bpo-kpo.html?category=BPO /
KPO

7. http://www.chillibreeze.com/articles/top-KPO-
companies.asp

8. http://www.expresscomputeronline.com/20100222/bpospeci
al03.shtml